On Tuesday, National Health Investors Inc. NHI announced that it has entered into an amended and expanded $800-million senior unsecured credit facility. This credit facility will boost the Murfreesboro, TN-based real estate investment trust’s (“REIT”) financial flexibility as well as aid its expansion plans.
The latest credit facility replaced the earlier one worth $700 million. The amended facility comprises $550 million in revolving credit facility and $250 million in term loan. The interest on the revolving credit facility, which is slated to mature in Jun 2020, will be determined on the basis of a margin of 150 basis points (“bps”) over the London Interbank Offered Rate (“LIBOR”).
On the other hand, 3 term loans with a total amount of $250 million bear a rate of interest of 175 bps over LIBOR and are slated for maturity in Jun 2020. Further, though subject to fulfillment of certain conditions, the credit facilities can be extended by another $250 million.
National Health Investors invests in income-producing health care properties primarily in the long-term care industry, which includes long-term care facilities, acute care hospitals, medical office buildings, retirement centers and assisted living facilities.
National Health Investors currently has a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks like Arbor Realty Trust Inc. ABR, Strategic Hotels & Resorts, Inc. BEE and CareTrust REIT, Inc. CTRE. While both Arbor Realty Trust and Strategic Hotels & Resorts sport a Zacks Rank #1 (Strong Buy), CareTrust REIT holds a Zacks Rank #2 (Buy).
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